China Vanke secures 2.064 bn yuan loan from Shenzhen Metro Group

China Vanke Co., Ltd. announced its board approved a loan of up to 2.064 billion yuan from Shenzhen Metro Group Co., Ltd., its substantial shareholder. This "Shareholder's Loan" aims to repay the principal and accrued interest on the company's open market bonds. The loan, with a term not exceeding three years, will bear interest based on the 1-year Loan Prime Rate (LPR) minus 66 basis points, resulting in a 2.34% rate as of the announcement date.

The loan's interest is calculated daily and settled quarterly, with outstanding interest due alongside the principal. Repayments will commence semi-annually, with each installment accounting for 0.5% of the drawdown amount, and a final repayment of 97% at maturity. Shenzhen Metro Group retains the right to require guarantee measures for the loan.

Independent non-executive directors affirmed the loan terms are market-based and beneficial, reflecting shareholder support without negatively impacting the company's financial or operating results. As Shenzhen Metro Group holds about 27.18% of China Vanke's share capital, this transaction constitutes a connected transaction. However, due to its ordinary commercial terms and lack of asset security, the loan is fully exempt from shareholder approvals and extensive disclosure requirements under Rule 14A.90 of the Listing Rules.